1 Chapter 11 Planning

2 Project Planning “establishing a predetermined course of action within a forecasted environment” “establishing a predetermined course of action within a forecasted environment”

3 Some PMs consider PLANNING as: * Time consuming. * Becomes obsolete very quickly. * It involves paper work. * You are bound to systematic procedures. * You are committed to achieve a specific result within a specified time period.

4 Effective Planning An effective plan will be:- * Explicit - stated in detail, leaving nothing merely implied. * Intelligible - it must be understood and be comprehensible. * Flexible - capable of accepting change. * Controllable - capable of being monitored for control purposes.

5 Reasons for Planning To eliminate or reduce uncertainty To eliminate or reduce uncertainty To improve efficiency of the operation To improve efficiency of the operation To obtain a better understanding of the objectives To obtain a better understanding of the objectives To provide a basis for monitoring and controlling work To provide a basis for monitoring and controlling work

6 DEFINITION OF A PROJECT LIFE CYCLE Resources Utilized RESOURCES TIME CONCEPTUAL PHASE DETAILED PLANNING PHASE FEASIBILITY AND PRELIMINARY PLANNING PHASE IMPLEMENTATION PHASE CONVERSION OR TERMINATION PHASE

7 Project Management Plans consist of: Scope management plan Scope management plan Schedule management plan Schedule management plan Cost management plan Cost management plan Resource management plan Resource management plan Risk management plan Risk management plan Procurement management plan Procurement management plan

8 Project Manager’s Responsibility at the Planning stage Project Manager will define: Project Manager will define: – Goals and objectives – Major milestones – Requirements (SOW, WBS, SPECS) – Ground rules and assumptions – Time, cost, and performance constraints – Operating procedures – Administrative policy – Reporting requirements

9 Line Manager’s Responsibility at the Planning stage Line manager will define: Line manager will define: – Detailed task descriptions to implement objectives, requirements, and milestones – Detailed schedules and manpower allocations to support budget and schedule – Identification of areas of risk, uncertainty, and conflict

10 Defining the Project Scope Project Scope Project Scope –A definition of the end result or mission of the project— a product or service for the client/customer—in specific, tangible, and measurable terms. Purpose of the Scope Statement Purpose of the Scope Statement –To clearly define the deliverable(s) for the end user. –To focus the project on successful completion of its goals. –To be used by the project owner and participants as a planning tool and for measuring project success.

11 Project Scope Checklist 1. Project objective 2. Deliverables 3. Milestones 4. Technical requirements 5. Limits and exclusions 6. Reviews with customer

12 Project Scope Scope Statements Scope Statements –Also called statements of work (SOW) Project Charter Project Charter –Can contain an expanded version of scope statement –A document authorizing the project manager to initiate and lead the project. Scope Creep Scope Creep –The tendency for the project scope to expand over time due to changing requirements, specifications, and priorities.

13 Preparation of internal SOWs Project office and/or user groups Project office and/or user groups Preparation of external SOWs Dependent on situation, & complexity Dependent on situation, & complexity Project manager/ line managers and project sponsor Project manager/ line managers and project sponsor Client who may have the capabilities Client who may have the capabilities WHO PREPARES THE STATEMENT- OF-WORK (SOW)

14 Statement of Work Elements General scope of the work General scope of the work Objectives and related background Objectives and related background Contractor’s tasks Contractor’s tasks Contractor end-item performance requirements Contractor end-item performance requirements Reference to related studies, documentation, and specifications Reference to related studies, documentation, and specifications Data items (documentation) Data items (documentation) Support equipment for contract end- item Support equipment for contract end- item

15 Misinterpretation Areas Mixing tasks, specifications, approvals, and special instructions Mixing tasks, specifications, approvals, and special instructions Using imprecise language (“nearly,” “optimum,” “approximately,” etc.) Using imprecise language (“nearly,” “optimum,” “approximately,” etc.) No pattern, structure, or chronological order No pattern, structure, or chronological order Wide variation in size of tasks Wide variation in size of tasks Wide variation in how to describe details of the work Wide variation in how to describe details of the work Failing to get third-party review Failing to get third-party review

16 Work Breakdown Structure Work Breakdown Structure (WBS) Work Breakdown Structure (WBS) –An hierarchical outline (map) that identifies the products and work elements involved in a project. –Defines the relationship of the final deliverable (the project) to its subdeliverables, and in turn, their relationships to work packages. –Best suited for design and build projects that have tangible outcomes rather than process-oriented projects.

17 How WBS Helps the Project Manager WBS WBS –Facilitates evaluation of cost, time, and technical performance –Provides management with information appropriate to each organizational level. –Helps in the development of the organization breakdown structure (OBS). which assigns project responsibilities to organizational units and individuals –Defines communication channels

18 WORK BREAKDOWN STRUCTURE Can be developed using a top-down or bottom-up approach Can be developed using a top-down or bottom-up approach Depth of WBS must balance out management effort against planning accuracy (influences technical and cost control) Depth of WBS must balance out management effort against planning accuracy (influences technical and cost control) For accuracy purposes the WBS should be taken down several levels For accuracy purposes the WBS should be taken down several levels

19 Most common type: Six-Level Indentured Structure LEVELDESCRIPTION 1Total Program 2Project(s) 3Task(s) 4Subtask(s) 5Work Package(s) 6Level of Effort WORK BREAKDOWN STRUCTURE (WBS)

20 DEVELOPING A WORK BREAKDOWN STRUCTURE (WBS) DEVELOPING A WORK BREAKDOWN STRUCTURE (WBS) PROTOTYPE DEVELOPMENT (1.1.0) ADVANCED DEVELOPMENT (1.2.0) PRE- PRODUCTION QUALIFICATION (1.3.0) FINAL PRODUCTION (1.4.0) UTILITY CAR ( )

WBS Example WBS LEVELS PROGRAM PROJECT TASK SUBTASK WORK PACKAGE

22 WBS Coding

23 WBS Work Packages Represents units of work at the level where the work is performed Represents units of work at the level where the work is performed Clearly distinguishes one work package from all others assigned to a single functional group Clearly distinguishes one work package from all others assigned to a single functional group Contains clearly defined start and end dates that are representative of physical accomplishment Contains clearly defined start and end dates that are representative of physical accomplishment

24 WBS Packages (Continued) Specifies a budget in terms of dollars, man-hours, or other measurable units Specifies a budget in terms of dollars, man-hours, or other measurable units Limits the work to be performed to relatively short periods of time to minimize the work-in-process effort Limits the work to be performed to relatively short periods of time to minimize the work-in-process effort

25 Milestone Chart ACTIVITY TESTING ANALYSIS REPORT PRESENTATION TIME

26 REASONS WHY PLANS FAIL Corporate goals not understood lower Corporate goals not understood lower down in the organization/company Plans encompass too much in too little time Plans encompass too much in too little time Poor financial estimates Poor financial estimates Plans based upon insufficient data Plans based upon insufficient data Poor staff requirements Poor staff requirements Insufficient time allocated for project estimating Insufficient time allocated for project estimating

27 Definition Cost of Corrections $1 Preliminary Planning $5 $25 $100 $1000 Detailed Planning Execution Implementation /Conversion